Leo Babu Kocherla V. National Faceless Assessment Department, Ministry of Finance and Income Tax Officer, Ward 1

WP/5929/2024

AI Insights

The case involves Leo Babu Kocherla, the petitioner, challenging an order issued by the Income Tax Department under sections 147 r.w.s 148 of the Income Tax Act, claiming it was arbitrary, illegal, and void ab initio. The petitioner argued that the order was not in compliance with the amended provisions of the Act, which came into effect on April 1, 2021, requiring faceless proceedings and proper notice under Section 1484. The court referenced a previous judgment in a similar batch of writ petitions (WP No. 25903 of 2022) where similar issues were addressed, leading to the allowance of those petitions on jurisdictional grounds.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 690263 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 06-03-2024
• Assessment Year: misc
• Other Referred Cases: Ashi.sh Agarwal vs. Revenue
• Laws Referred To: Article 226 of the Constitution of India, Section 147 r.w.s 1448 of the Act, Section 148A and section 149 of the Act, Section 151A of the Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SUNDARI R PISUPATI
• Assessee Lawyers: A V RAM
• Keywords: Arbitrary; Faceless assessment; Illegal; Income Tax; Violation of provisions; Void ab initio; Writ of Mandamus
• Section: 147; 149; 148A; 1448; 151A; 226

Judgement Text

"1 I i HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE SIXTH DAY OF MARCH TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 5929 OF 2024 [ 337s ] Leo Babu Kocherla, S/o. Sri Arlappa, aged about 55 years, Vinayak Nagar, Nizamabad - 503001. ...PETITIONER Between: Sri John 1-1-1251A AND 1 Assessrnent Unit, National Faceless Assessment Department, Ministry of Finance, Room No. 401, Jawaharlal Nehru Stadiurn, Delhi 1 10 003 Centre, lncome Tax 2nd Floor, E-Ramp, 2- The lncome Tax Officcr, Ward 1, 6-2-156/3, Subhash Nagar, Nizamabad - 503002 ...RESPONDENTS Petrtion under Article 226 of lhe Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to pass an order or direction, especially one in the nature of WRIT OF MANDAMUS holdrng that the order passed by 1St Respondent u/s. 147 r.w.s 1448 of the Act, dr.O7l02l2o24 with DIN No ffBAlASTlsl147l2O23 2411060628459(1) for the Ay.2016 - 17, as arbitrary, illegal, bad in law, void ab initio, apart from being violative of provisions of section 148A and section 149 of the Act and also contrary to the circular issued by CBDT and provisions of section 151A of the Act, and consequently set aside the same. l I i I i I I I i I I I i ! I I i Petition under section 151 cPC praying that in the circumstances stated in the affidavit filed rn support of the petition, the High Court may be pleased to stay all further proceedings, including any recovery, pursuant to the order passed by the 1st Respondent uls. 147 r.w.s 1448 of the Act, dt.OilOZl2O24 with DIN No ITBA/AST/S/14712023 - 24t1O606284s9(i ) for rhe Ay 2016 - 17. Counsel for the Petitioner: SRI A.V.RAGHU RAM Counsel for the Respondents: MRS SUNDARI R.plSUpATl, Sr. SC for lncome Tax Dept The Court made the following: ORDER lA NO: 1 OF 2024 ! l I i I THE HON'BLE SRI JUSTICE P.SAM KOSI{Y AND THE HON'BLE SRI JUSTICE N.TUKARAIVIJI WRIT PETITION No.5929 OF 2o24 ORDER:@er Ho n'ble Srt Justice P.SAM KOSHY) The instalt Writ Petition has been filed by the petitioner under Articl e 226 of the Constitution of India seeking for the following reliel \". . -to issue an appropiate uit order or direction, more particularly, one in the nature of WRIT Of MANDAMUS hotding that the order passed bg 1't respondent u/ s.147 r.w.s 1448 of the Act, dt.O7.O2.2024 tpith DIN No.ITBA/ AST/ S/ 147/ 202s-24/ 1060628459(1) for tle Ay.2O15-16, as arbitrary, illegal, bad in laut, uoid ab initio, apart from being uiolatiue of prouisions of section 148A & section 149 of the Act and also contrary to the ciranlar issued by CBDT art-d prouisions of section 751A of the Act, and consequentlg set astde the same...' 2. Heard Mr. A.V. Raghuram, Iearned counsel appearing for the petitioner ald Mrs. Sundari R Fisupati, learned Senior Standing Counsel for Income Tax Department appearing for the respondents. Perused the record. 3. One of the contentions that the petitioner has raised in the present Writ Petition is that under the amended provisions of the Act which ca-Ine into effect from Ol .O4.2021 , the respondents, rr\"'hile proceeding under 2 PSK,J & NTR,J W.P.No.5929 oJ 2O24 Section 148 of the Act, were required to issue notice under Section 1484 and provide arr opportunity of hear-ing to the assessee. As per the amended provision of law, the proceedings to be drawn are also in a faceless manner. 4. Wherea.s, learned counsel for the petitioner contended that, in the instant case, reopening has been initiated by the Jurisdictional Assessing Officer. In support of his contention, he relied upon the recent judgment rendered by this very Bench in Wp.No.25903 of 2022 &, batch, dated 14.O9.2023 wherein this Court disposed of the batch of writ petitions to the limited extent. 5. On the other hand, learned Standing Counsel for the respondent-Department does not dispute that the said objection , ,as decided in the aforesaid batctr of Writ Petitions. However, he further contended that apart from the aforesard objection, there have been other various objections also which the petitioner has raised in the writ petition. 6. So far as this contention of the learned counsel for the respondent-Department is concerned, this tsench. while 3 PSK,J&nl:IR,J W.P.No.5929 oJ 2O24 disposing of said batch of writ petitions, had taken note of the same at paragraph Nos.37 & 38 which are reproduced herein under: \"37. The preliminary objection raised bg the petitioner is sustained and all tLese urit petitions sfands alloued on this uery juisdictional issue. Since the impugned notices and orders are getting quashed on the point of jurisdiction, u)e are not inclined to proceed further and decide the other issues raised by the petitioner which stands reserued to be raised and contended in an ap p rop riate p rocee ding s. \" \"38. Since tLe Hon'ble Supreme Court had, in the case of Ashi.sh Agar-Lual, supra, os a one-time measure exercising the pouters under Article 142 of the Constitution of India, permitted tlre Reuenue to proceed under tLLe substituted prouisions, and this Court atlowing tle petitions only on the procedural Jlou, the ight confened on the Reuenue uould remain reserued to proceed further if theg so tuant from the stage of the ord.er of the Supreme Court in the case of Ashi-s'h Agaruta| supro.\" 7 . In view of the sarne, we are inclined to allow the present writ petition also on similar terms. Accordingly, the present Writ Petition stands allowed on the objection of the petitioner that the proceedings have not been drawn in accordance with the amended provision but under the un-arnended pro.\".sion which is othenvise not sustainable. t l 4 PSI(,J & MTR,J W.P.No.5929 oJ 2O24 8. As has been held by this Bench in the aforesaid batch matters, the rights of the parties woutd stand reserved as is envisaged at paragraph Nos.37 & 3g of the said order passed in the batch of writ petitions. No order as to costs. Consequently, miscellaneous petitions pending, if any, shall stand closed. SD/- K.SREERAMA MURTHY ASSISTANT REGIST R //TRUE COPY// To, 4 5 BSR GJP 2 3 SECTION OFFICER The Assessnrent Unit, National Faceless Assessment Centre, lncome Tax Departmenl,. Ministry of Finance, Room No. 401 . 2nd ftoor, glfiami. Jawaharlal Nehru Stadium, Delhi 1 10 003 The^lncome Tax Officer, Ward .1 , 6-2-156/3, Subhash Nagar, Nizamabad _ 503002 One CC to SRI A.V.RAGHU RA[/, Advocate tOpUC] One CC to MRS SUNDART R plSUpATt, Sr. SC for tncome .fax Dept tOpUCl Two CD Copies & : HIGH COURT DATED: 0610312024 @C.9r* ORDER WP.No.5929 of 2024 ALLOWING THE WRIT PETITION, WITHOUT COSTS 1 I)c I6: c ( o o 0 2 t{Av zffit + ;: .t :/ 6ee- "